ARC NEWS
Indigo Partners orders 255 Airbus A321neo aircraft
November 16, 2021
Indigo Partners and Airbus have announced an order for 255 Airbus A321neo aircraft at the Dubai airshow, to be distributed among the private equity firm's portfolio carriers. The move signals a vote of confidence in the medium-term recovery of airline passenger markets, with Indigo Partners managing partner Bill Franke telling journalists that the company takes an "optimistic view" of future demand and wants to be "early in the process" of fleet expansion. The order will see Budapest-based Wizz Air receive 102 aircraft, consisting of 75 A321neo and 27 A321XLR units; US airline Frontier will take 91 A321neos; Mexico's Volaris 39 A321neos, and Chilie's JetSMART 23 aircraft, made up of 21 A321neos and two A321XLR's. In addition, Volaris and JetSMART will upconvert orders for 38 A320neos to A321neos. The move means that Indigo Partners will hold orders for 1,145 A320-family aircraft, with Franke commenting that the latest deal does not replace any previous announcements. He adds that the four low-cost airlines in the company's portfolio have proven "very resilient" through Covid-19, and stand to grow heavily through the coming decade. "The delivery schedule that we negotiated with Airbus is consistent with our expectations with demand," he said. In a 14 November press release, he cites the "industry-leading efficiency, low unit costs and a substantially reduced carbon footprint relative to prior models", as contributing to the decision to reorder A321neo equipment. "With these aircraft, Wizz, Frontier, Volaris and JetSMART will continue to offer low fares, stimulate the markets they serve and improve their industry-leading sustainability profile." Airbus chief commercial officer Christian Scherer commented at the press event in Dubai that although some of the first aircraft would arrive in the next few years, the bulk would arrive in the second half of the decade. Asked whether the move would absorb the airframer's delivery spots, he responded that: "The short answer is yes, but we are very flexible with our customers". Also present was Wizz Air chief executive Jozsef Varadi, who noted that some of the 27 A321XLR aircraft that his carrier will receive will be placed with Wizz Air Abu Dhabi, with the carrier previously noting that seven billion people live within a seven-hour radius of the location – within the A321XLR's range. Wizz Air has a goal of achieving a fleet size of 500 aircraft by 2030, with Varadi noting that the latest order brings the airline close to achieving this. Airbus has additionally provided Wizz Air with 75 A321neo purchase rights for delivery in 2028-29, to be converted into a firm order by the end of 2022. As with previous orders, Wizz Air has the right to substitute a number of the A321neo aircraft with the A320neo and/or A321XLR aircraft and vice versa, depending on its future requirements.


​Embraer plans two-version turboprop for 2027 launch
November 16, 2021
Airframer Embraer is pushing ahead with plans for two variants of a clean-sheet turboprop aircraft, designed with the US regional market in mind. Speaking to reporters as part of the company’s presence at the Dubai air show, vice-president for marketing Rodrego Silva e Souza comments that the company is developing the business case for the project and discussing it with suppliers and customers. Talks are taking place with the three main engine manufacturers about the project, with selection due to take place next year. This would see the aircraft launched in the second half of 2022, with an entry into service five years beyond that. Of particular importance are potential sales to US regional operators, with Silva e Souza commenting that whereas Embraer did not initially expect strong demand from the sector, discussions with customers have revealed the need to replace 50-seater turboprop aircraft "and even some jets, in a very sustainable way". This is "bringing another layer of demand to our business case", he adds. Embraer is planning two variants of the equipment, the smaller one of which will be 70 seats in a single-class configuration, Silva e Souza reveals. Adaption to the US market, which typically includes first-class and premium economy seating, would result in around 50 seats on this version. "That's one of the reasons why the airlines are very much motivated to that, because they can replace 50 seats on [existing] turboprops with higher revenue in first class and premium class", explains Silva e Souza. He indicates that the larger variant of the aircraft would be 90 seats in a single-class configuration. Chief executive of Embraer commercial aviation Arjan Meijer comments that the company's plans tally with expectations that sustainable aviation fuel will be required to reduce emissions. "The time for the turboprop to come to market and work with existing technology, including SAF, is what the industry needs for the next at least 20 years". He adds that the project is the "highest on the agenda" at Embraer currently: "We believe that is really the product to focus on."


​Aeromexico receives alliance proposal from key stakeholders
November 15, 2021
Grupo Aeromexico has received a joint alliance proposal from lenders under Tranche 2 of its DIP financing facility and from certain existing creditors and new investors. The alliance proposal is supported by group's strategic partner and shareholder Delta Air Lines, Aeromexico notes. It says the proposal provides an implementable solution, through a "solid group of long-term Mexican investors", to comply with foreign ownership requirements. Grupo Aeromexico says its board has instructed its restructuring advisors to prepare a revised version of the Chapter 11 reorganisation plan and a disclosure statement that reflects the terms of the alliance proposal. The hearing to approve the disclosure statement and to confirm the reorganisation plan has been adjourned to a new date to be set in due course by the bankruptcy court. The group says it will work with all key stakeholders to finalise and file the reorganisation plan documents, obtain court approval, and solicit votes in favour of the plan once the disclosure statement is approved, in order to emerge from Chapter 11 proceedings as expeditiously as possible.


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